Nn Council Oks Budget, Leaves Tax Cut At 4 Cents

The Newport News City Council passed a $746 million budget Tuesday that will mean higher real estate taxes as city spending grows by almost 16 percent.

The real estate tax rate will drop 4 cents to $1.20 per $100 of assessed value, but the average home values are expected to rise 21 percent this year. A home valued at $150,000 will be worth $181,500 after reassessments and face a real estate tax bill of $2,178, up from $1,860 the year before.

Council member William Haskins, who originally wanted an 8-cent reduction, was the only one who voted against the tax rate. Haskins argued that the proposed tax rate cut would yield major benefits for big companies, but only an average of $88 of relief for homeowners.

Rather than only cut the rate 4 cents, Haskins argued, the city should leave the rate alone and use the extra money to shore up its under-funded pension plan. "We have an obligation to our city employees," said Haskins.

Councilwoman Madeline McMillian, who also wanted to see more cuts to the budget, said the $88 could mean a lot even to someone with a $200,000 home. "Sometimes something is better than nothing," said McMillian.

Taxpayers didn't come out to the meeting to oppose the budget. Council member Bert Bateman Jr. wasn't present.

Most of the increased spending is being directed at meeting long-term challenges. The pension fund is short by more than $200 million and debt service is growing. Both problems will be even worse in next year's budget.

Since the original release of City Manager Randy Hildebrandt's recommended budget, some things have changed. Assessments came in higher than expected, giving council leeway to both spend more money on schools and cut the tax rate.

Other than schools, some public safety and human service programs will see a boost. Employees will get an average 4 percent raise and the city will add 30 positions. *